Glossary definition: Operational Risk Management (ORM)

ORM: Strategies for Mitigating Operational Risk

Operational Risk Management (ORM) is the process of identifying, assessing, and mitigating risks that can arise from the operations of an organization. It is an important part of an organization’s overall risk management strategy, and involves the identification, evaluation, and control of risks that can arise from the organization’s operations. ORM is a proactive approach to managing risks and encompasses a wide range of activities, including risk identification and assessment, risk control and monitoring, and risk response and recovery. ORM also involves the development and implementation of policies, procedures, and systems to effectively manage operational risks. The goal of ORM is to ensure that the organization’s operations remain safe, secure, and efficient, while minimizing losses and maximizing returns. ORM is a continuous process that requires ongoing monitoring and review to ensure that risks are identified and addressed in a timely and effective manner.